We Energies says Microsoft won’t be held to contract terms that conflict with state regulators’ order

Microsoft's recently signed 15-year electric service contract with We Energies for its data center in Mount Pleasant, Wisconsin, includes a clause mandating that power plants serving the facility must be located in eastern Wisconsin or Michigan's Upper Peninsula. This provision directly contradicts a decision made in May by the Wisconsin Public Service Commission (PSC), which voted to eliminate such geographic restrictions. Critics of the provision argued it would hinder Microsoft's ability to access wind power from other parts of the Midwest.

We Energies has publicly stated its intention to adhere to the PSC's order, rather than the contract's specific language, as it seeks to resolve the inconsistency with the commission. The discrepancy stems from earlier disagreements during the PSC's deliberations on a new rate structure for large data center customers, particularly regarding whether these facilities should be limited to nearby energy sources or allowed to draw from a wider grid. WEC Energy Group Director of Planning, Jody Arendt, had previously argued that closer plants would reduce grid failure risks, noting their location within the American Transmission Company (ATC) territory, a utility in which We Energies holds a majority stake.